With Rs.70 million seed funding; India’s first property Multiple Listing Service IndiaMLS launched

Listed online real estate database operator Zillow Group (NASDAQ: Z) valued at $4.8 bn, and Commercial Real Estate Information company CoStar Group Inc. (valued at $7 bn) have set the tone for online real estate valuations worldwide.

Fresh on the heels of receiving the company’s initial round of funding of Rs. 70 million, IndiaMLS is poised to disrupt the real estate industry in India, and more importantly, come to the rescue of real estate professionals in their fight against web portals that try to eliminate the broker.

“IndiaMLS believes in Pro-Broker, not no-broker,” said Jay Patel, Founder and CEO of IndiaMLS Systems, a highly specialized B2B Multiple Listing Service (MLS), created specifically for the brokerage industry in India. The company states their system is designed to educate, empower, and elevate the status of professional brokers throughout the country.

“These new Internet upstarts believe they can simply replace the personal or human element of buying a property, but they’re grossly misinformed,” said Patel, who is a real estate veteran himself, and holds a managing broker license in the U.S. “Even in developed nations with significant web solutions, more than 88% of all real estate transactions are closed with the help of a broker.”

“A home is the single greatest investment most individuals make in their lifetime, thus it cannot be taken lightly. Many believe real estate agents, like travel agents, are a dying breed, but purchasing a home is not as simple as buying a plane ticket. Your plane trip will be over in a few hours, but your home lasts a lifetime. It is where you lay your head down each night, where you raise your kids and make memories, and where the majority of most people’s net worth is held. Would you honestly look at a few pictures and unverified data on the Internet to make such an important decision?”

It is this passion that fueled Patel’s desire to launch IndiaMLS. The company is based in Powai, the new “Silicon Valley” of India, and already has a staff sixty strong, armed and ready to fight for the broker. In fact, the company’s slogan is “Built by Brokers, for Brokers.”

When asked if IndiaMLS is similar to Housing.com, MagicBricks, or 99Acres, Patel clarified IndiaMLS is a B2B company, created solely for the brokerage industry. The other portals are B2C companies built for the end consumer. “The current Internet portals in the market are not our competitors as we serve two completely different clients. In fact, in countries like the US, the B2C portals obtain all their property listings directly from their local MLS.”

Patel went on to describe that IndiaMLS was designed very similar to a successful US company called CoStar Group, currently valued in excess of $7 billion, however CoStar services a very specific market in commercial real estate. IndiaMLS will represent the only national MLS system in the world which offers verified residential and commercial property data to its members.

What is a Multiple Listing Service (MLS)?

An MLS is a membership-based software platform created to form an online network of professional brokers. The system is designed to increase the broker’s efficiency, save money, protect broker’s interests, improve the broker’s status as a professional, and bring structure and standardization to the real estate market.

Through an MLS system, brokers can upload all their property listings onto a common network, so all listings can be shared with other member brokers and sold much faster than traditional advertising. The MLS also helps brokers maintain an organized database of client and verified listing data. In short, an MLS is a complete end-to-end solution for a realtor.

Why does India need an MLS?

The real estate industry represents almost 10% of India’s GDP, however, this market remains unorganized and unregulated. Even the recent launch of real estate websites such as Housing, CommonFloor, PropTiger, and others, do not solve the problem, thus the need for a truly unique system made for industry professionals. An MLS system can help bring structure and standardization to an otherwise chaotic market. Most importantly it will help separate the professional brokers from those posing as professionals, due to the lack of broker licensing in India.